Details

Case

Educator Copy

Orangi Charitable Trust

Nasir Afghan


INDUSTRY : NGO Management

AREA : HRM/OB

ORGANIZATION : Orangi Charitable Trust

LENGTH : 17

LUMS No : 05-721-2005-1

PUBLICATION YEAR : 2005

DESCRIPTION

KEYWORDS:

Orangi Trust,Charitable Trust,Human Resources,NGO Management,Strategy,Cost Effectiveness,Loan Processing System,Organizational Structure,Operations,Evaluation


DESCRIPTION:

In PPMarch 1993, Dr Anwar Rashid, Director Orangi Charitable Trust (OCT), was going over a review of the strengths and weaknesses of the organization¿s performance over the period 1987-1992. In 1992 OCT had started distributing loans through agents who were paid Rs 1,000 per month. This strategy was cost effective and it helped in scaling up OCT¿s operations throughout Orangi. In 1993, when the OCT management decided to evaluate the program, several weaknesses in the loan processing system were discovered that could threaten the existence of any micro-credit program. Though OCT had increased its client base, the default rate had almost doubled. Anwar was wondering how he could solve organizational structure issues, without increasing overheads. 


LEARNING OBJECTIVES:

This case is designed for an Organizational Behaviour course for MBA classes. It can also be used in the NGO Management courses by SEDP. The students would be able to explore the strategy of an NGO that expands its operations through local agents and would be able to assess the merits of and obstacles to various NGO growth options.


SUBJECTS COVERED:

Human Resource Management, Organizational Behaviour